How Release Dates Are Affecting OTT Deals for Big Films

OTT platforms became highly popular during the COVID-19 pandemic as people couldn’t visit theaters. Many producers invested in OTT, selling new films for high prices due to the increased demand. Some films were even released directly on OTT platforms, giving producers good returns. As a result, producers began increasing their budgets, expecting good returns from digital rights after theatrical releases.

However, the situation has now changed. OTT platforms are no longer offering the same high rates for digital rights. In fact, not all movies are bought by OTT platforms, and the rates offered are lower than before. Moreover, several conditions are now imposed on the producers, causing frustration, especially for those who raised budgets expecting high digital income.

OTT platforms are also influencing release dates. They offer specific rates depending on when the film is released. For example, films set for release during festive times like Sankranti see reduced rates because during these periods, more people prefer watching movies in theatres rather than on OTT platforms. This trend has affected films like Game Changer and Thandel, which were postponed from Christmas to Sankranti, resulting in lower digital rights rates.

Producers are still opting for Sankranti releases, hoping to recover losses through strong theatrical earnings during this peak movie-watching season. Though OTT rates are lower, the potential for high theater collections during festivals is still appealing to many filmmakers.